Pago Pago, AMERICAN SAMOA — The final review of the FY 2025 budget by the Joint Budget & Appropriations Committee of the Fono was postponed yet again yesterday to this morning by Fono leaders.

This was after the Senate Budget & Appropriations Committee met on Wednesday and agreed to recommendations by committee vice chairman Senator Magalei Logovii.

This includes earmarking $6 million for Medicaid to ensure that the Fono cannot be blamed if the governor line-item vetoes the funding. Senator Magalei, who chaired the hearing in the absence of Chairman Senator Utu Sila Poasa (currently off-island), stated that by earmarking the Medicaid funds, the Fono is signaling that the government should allocate this money. This way, the public cannot hold the Fono responsible if the governor decides to veto the funds.

Senator Magalei also advised that the Fono earmark $1 million for the Fono building dedication scheduled for next year. He pointed out that no funds had previously been set aside for this important event.

The third change involved adding $45,000 to the Office of Samoan Affairs budget to provide a $15,000 pay raise for the three District Governors, increasing their salaries to $75,000 each in the new fiscal year.

At the conclusion of Wednesday’s discussions, Senate President Tuaolo Manaia Fruean announced that the proposed changes would be presented to the House members during their meeting the next day.

Yesterday, following the Senate’s regular session, senators waited for about 10 minutes for the House members to arrive. Tuaolo then announced that the hearing would be postponed to today.

The budget discussion this last Tuesday was intense, with significant differences in opinion between House Speaker Savali Talavou Ale and Committee Vice Chair Senator Magalei.

House Speaker Savali firmly supported the proposed budget amount of $165.9 million in local revenues, while Senator Magalei stood firm in his belief that the government would not be able to raise the projected local revenues of $165.9 million in the FY2025 budget and advised cutting the Special Programs budget which is over $25 million to just $11 million.

The Medicaid subsidy of $6 million is in the Special Programs, and as stated, the proposed change by Senators would have it earmarked.

Magalei particularly pointed out that were no revenue measures approved to raise new money for the government.

He said outright that the administration increased the budget to match expenditures for things that it wanted, but the budget was unrealistic.

The senator believes, based on the collections for the current and past two fiscal years, the average amount that would be collected — based on numbers from Treasury — is $128,500, while the maximum amount that the government would be able to collect would be about $136 million.

Senator Magalei asked, “Why are there still so many people who haven’t received their tax refunds?”

“And why are numerous companies complaining about not receiving payments for services rendered?

“I know what's happening because I have worked at Treasury and the Budget Office for many years.”

“The Budget Office has increased the budget to cover administrative expenditures, but there are no funds to support it!” he stated bluntly.

As the final budget review takes place today, it is expected that House members will propose their own changes.

Whether or not Senator Magalei's concerns will be addressed by a reduction in the proposed FY2025 budget will be seen today — or not.

The committee final review has been postposed twice now — the first on Wednesday, when no faipule showed up for the review, and yesterday, when a second postponement was announced by Senate President Tuaolo with no specific reason cited, after faipule showed up.